Australian rate cuts helping economy: Swan

EndaCurran

SYDNEY--Steep interest-rate cuts by Australia's central bank are beginning to flow through to the economy and boost sectors outside of mining and resources, Treasurer Wayne Swan said Friday.

His remarks echoed recent commentary by Reserve Bank of Australia, or RBA, officials. The RBA has cut rates by 1.75 percentage points since November 2011, an easing it has described as "substantial".

In minutes of its Feb. 5 policy meeting, the RBA said it saw early signs the impact of the cuts was starting to be seen in certain parts of the economy such as the housing market and construction industry.

Mr. Swan also remarked on the government's aborted plan to return a budget surplus this fiscal year. He said a surplus would be possible when economic and employment growth strengthened, adding that government revenue continued to fall more than expected.

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